The Board of Directors of the Union Bank Limited met on October 29, 2004 at a local hotel here. The meeting was chaired by Union Bank Chairman Mueen Afzal.
The Board reviewed the financial results, and showed its satisfaction over the performance of the Bank, and its overall growth achieved during the quarter.
"The Union Bank's profitable growth strategy is proving to be successful as is evident from the seven consecutive quarters' result in the same period last year", said Union Bank President and Group CEO Shaukat Tarin.
He also said the Bank's superior financial performance is the result of strategic plan to invest in diversified product portfolio in consumer, corporate banking, and the SME sector, and highlighted the improved expense to revenue ratio of the Bank.
The Board felt confident of the Bank's future profitability and growth.
It also approved the financial results for the third quarter ended September 30, 2004. The Bank's operating profit before provisions for the period amounted to Rs 1.25 billion as against Rs 608 million in the same period last year, indicating a growth of 106 percent.
The total Assets of the Bank have also recorded a substantial growth of 32 percent at Rs 78.97 billion in the first three-quarter of 2004, as compared to Rs 59.70 billion in the corresponding period last year.
The profit before-tax recorded an increase of over 76 percent amounting to Rs 1.01 billion, as compared to Rs 572 million in the same period last year, while the profit after-tax increased by 54 percent to stand at Rs 597 million as against Rs 387 million in the same period last year. The EPS has also improved to Rs 4.45 from Rs 2.89 on an annualised basis.
The Bank's total advances have also increased by 49 percent to Rs 48.75 billion as compared to Rs 32.82 billion in the same period last year. Similarly, deposits have also increased by 30 percent to Rs 61.82 billion from Rs 47.55 billion in the same period last year.
Its product portfolio covers a wide range of branch, corporate, and consumer banking products catering to the lifestyle needs of its target customers.
The Union Bank is the sole issuer of American Express credit, charge and corporate cards in Pakistan, and has a merchant acquiring network for acceptance of American Express, MasterCard, and Visa cards at retail establishments.
During the year, the Union Bank has crossed a monumental milestone of issuing over 100,000 American Express cards, and also launched Pakistan's first Visa Debit Card by the name of 'Shopping Card' and introduced an innovative agricultural credit card for farmers, called 'Kissan Card.'
The Union Bank is also the first bank in Pakistan to introduce program-based financing products for small and medium enterprises (SMEs). In addition to offering loans to small and medium enterprise segment, it also offers advisory to manage the business more effectively.
It offers a variety of deposit products for banking customers such as 'Mahana Izaafa' and 'Business Account.'
The Bank also offers one of the widest range of consumer banking products, including home loans, auto loans, and mortgage finance products.
In addition, the Bank has a running finance product for individuals with the name of 'Ready Cash.'
The credit rating agencies, Pacra and the JCR-VIS, have reaffirmed the credit ratings to the Union Bank Limited in December 2003. Both agencies have assigned A+ (single A Plus) for long-term equity and A1 (single A One) for short-term equity.-PR
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